Japan Corporate Services Inflation Reaches 3.7% in September, Highest Since 2024

Prices charged by Japanese service companies to other businesses increased 3.7% in September 2026 from a year earlier, according to data released by the Bank of Japan on Tuesday, October 27. The annual increase followed a revised 3.5% rise in August.

The Services Producer Price Index measures transactions such as freight transport, property-related services, advertising and business rentals. It differs from the consumer price index, which measures prices paid by households. A higher reading in this business-to-business measure can indicate cost pressures that may eventually affect consumer prices, although that transmission is not automatic.

A breakdown of the September data showed transport and postal service prices rising 8.4% year on year, compared with 6.8% in August. Leasing and rental service prices increased 11.7%, while prices for real-estate services were 2.2% higher. Information and communications service prices rose 2.5%, unchanged from August, while advertising prices declined.

The overall index increased 0.3% from August, extending a series of monthly rises. September's annual increase was the highest since June 2024, according to a summary of the official data by Trading Economics.

The report comes ahead of a scheduled Bank of Japan monetary policy meeting concluding later this week. Policymakers have been assessing how labour expenses and imported costs are feeding into domestic prices. The latest index reading provides an additional observation of service-sector inflation, but it is not itself a central-bank decision or an announcement of a change in interest rates.

Businesses facing higher service bills may adjust their own pricing, margins or spending plans differently. The Bank of Japan will have to weigh these data alongside household inflation, wages, demand and wider economic conditions when setting policy.